Key Points

A worker is any person engaged in an economic activity that contributes to the Gross National Product (GNP). These activities include all production of goods and services, and workers can be self-employed or hired.

The Worker-Population Ratio is an indicator showing the proportion of the total population that is employed. It is calculated by dividing the total number of workers by the total population and multiplying by 100.

Workers are broadly classified into three categories: Self-employed (over 50% of workforce), Regular Salaried Employees, and Casual Wage Labourers. Self-employment is the major source of livelihood in India.

The workforce is divided into the Primary Sector (agriculture, mining), Secondary Sector (manufacturing, construction), and Service Sector. The Primary Sector remains the main source of employment for the majority of workers in India.

There is a significant gender disparity in employment, with men forming the majority of the workforce. Female workforce participation is notably lower, especially in urban areas and in regular salaried employment.

Rural areas have a higher worker-population ratio with a workforce concentrated in the primary sector. Urban areas have more workers in the service and secondary sectors, with a higher share of regular salaried employees.

Jobless growth is a situation where the Gross Domestic Product (GDP) of a country increases, but there is no corresponding increase in employment opportunities. This indicates growth is being achieved without creating new jobs.

Over the decades, India's workforce has seen a substantial shift from farm work to non-farm work. The share of the primary sector in employment has declined from about 74% in 1972-73 to around 46% in 2022-23.

Casualisation refers to the trend of workers moving from self-employment and regular salaried jobs towards casual wage work. This process often leads to increased job insecurity and vulnerability for workers.

The Formal (Organised) Sector includes public sector establishments and private establishments with 10 or more hired workers. All other enterprises and workers, including most farmers and small shop owners, form the Informal (Unorganised) Sector.

Informalisation is the process of a growing proportion of the workforce being employed in the informal sector. A vast majority of Indian workers are in the informal sector, lacking social security benefits and job security.

Key types of unemployment in India are Disguised Unemployment (more people working than necessary), Seasonal Unemployment (jobless during certain seasons, common in agriculture), and Open Unemployment (actively seeking but not finding work).

The government creates employment directly by hiring people in its departments and enterprises, and indirectly by stimulating private sector activity. It also implements various employment generation programmes.

Passed in 2005, MGNREGA is a landmark government scheme that guarantees 100 days of wage employment in a financial year to any rural household whose adult members volunteer to do unskilled manual work.